Zulhas Finally Explains the Difference Between Village Cooperatives and Alfamart-Indomaret
Coordinating Minister for Food Zulkifli Hasan (Zulhas) has stressed that the ‘Red and White’ Village/Sub-district Cooperatives (Kopdes) are not being established as general stores. He explained that their primary function is to serve as government infrastructure for distributing aid and subsidised goods, as well as acting as an offtaker to absorb community produce.
Zulhas stated that the government often faces the assumption that the Red and White Cooperatives will operate like supermarkets. In reality, their role is far more strategic, serving as an extension of the government down to the village level.
“As has been explained many times, this Kopdes is government infrastructure. Government infrastructure to distribute aid and subsidised goods through the Red and White Village/Sub-district Cooperatives. This includes future market operations, as every village will have a Kopdes or Sub-district Cooperative,” Zulhas said during a press conference at the Graha Mandiri Auditorium, Jakarta, Monday (20/7/2026).
In addition to being a distribution channel for aid, the Red and White Village Cooperative will also function as an offtaker that buys community harvests at government-set prices when market prices fall.
“Number two, it will gradually become an offtaker. For example, if the government sets the price of unhusked rice at Rp6,500 (per kg) but the market price is Rp5,000, then the Red and White Village Cooperative will buy and take over as the offtaker,” he said.
“So, do not imagine that Kopdes is a supermarket or a convenience store. It is not. Later, if it becomes more complete, that is for the future. But for now, it is government infrastructure and an offtaker,” he continued.
Zulhas explained that this function will be strengthened through a Presidential Regulation (Perpres) currently being prepared by the government. In the future, the distribution of food aid, subsidised fertiliser, and market operations will be channelled through the Red and White Cooperatives.
“The aid will go directly from the National Food Agency (Bapanas) to the Kopdes. The Kopdes will distribute it. At the same time, it can be checked whether the aid is on target or not,” Zulhas explained. “There are also subsidies. What are the subsidies? Fertiliser, for example. The fertiliser will go directly to the Kopdes, and the Kopdes will distribute it to the people. Every village has one, and the farmers’ fields are in the village. So, the distribution of fertiliser will go through the Red and White Village Cooperatives, or for fish, the Red and White Fishermen’s Village.”
Meanwhile, Minister of Villages and Development of Disadvantaged Regions Yandri Susanto also confirmed that the Red and White Village Cooperatives will not turn into shops that compete with small businesses in the village. He said the cooperatives will only prioritise the distribution of subsidised goods so as not to kill off existing grocery stalls.
“The main priority is only subsidised goods. God willing, it will not kill small shops or grocery stalls in the village. It will be regulated in such a way that everything remains alive and strong,” Yandri said after the press conference.
Yandri also ensured that the existence of the Red and White Village Cooperatives would not clash with Village-Owned Enterprises (BUMDes). The two are encouraged to complement each other according to their respective business fields.
“The cooperation between BUMDes and Kopdes is good, a collaboration. Because BUMDes have their own unique business units. For example, BUMDes manage a tourism village, which does not overlap with Kopdes. Later, Kopdes can prepare the needs of that tourism village,” he explained. “Then, BUMDes that prepare export villages also do not overlap with the Red and White Village Cooperatives. Just collaborate, BUMDes and Kopdes. They will not eliminate or bring each other down, but rather strengthen one another,” he concluded.